Page 4 - Personal Finance

Why this is not the time to take on very long-term fixed deposit investment

For periods longer than 3 years, it is a good idea to explore debt mutual funds that offer indexation benefits and lower the tax outgo

Scrutinise your no-cost EMI offers for hidden charges, say experts

There could also be a third scenario where the interest cost is added to the product price and then the higher price is converted into EMIs

Don't let exposure to mid and small-cap funds exceed 30%: Experts

They will outperform if GDP, earnings growth sustain, but global risks pose threat

Use data on education loan defaults to rank courses

Information on default rates of specific courses and institutions should be made available to the public. Students could use it as one of their selection criteria

Not just car, get a good deal on auto loan as well, advise experts

Besides discount, look for free warranty, insurance and accessories to lower purchase cost

PPF and Sukanya Samriddhi are most attractive in small-savings basket

Senior Citizens' Savings Scheme remains a must-have for those who need regular cash flows after retirement

Consider festive offers that lower your cost of house acquisition

Don't let freebies blind you to key considerations like location, infrastructure, and the developer's record

Transparency as antidote to conflict of interest

Far from being a hindrance to our practice, transparent disclosure of conflict of interest is a powerful tool that has helped us gain clients' trust

Stay invested in US funds even if returns aren't attractive currently

It helps to diversify geographically; while YTD returns of Indian markets are positive and US markets negative, the opposite will also happen at some other time

Fed-induced market volatility could spur demand for gold: Experts

Use current correction to build a 10-15% allocation to yellow metal

Consider G-Sec STRIPS to lock in returns for very long tenures: Experts

Since this is a nascent category to invest, there could be liquidity risk

Address cause of tax refund failure, then request reissuance: Experts

Failure to verify return, incorrect bank address are key reasons for not receiving timely refund

Does your tax liability for year exceed Rs 10,000? Pay advance tax

While NRIs are liable to pay advance tax, senior citizens with pension and interest income are exempted

Consider loss of cover, deductions before surrendering life insurance plan

If your income is likely to revive soon, consider taking a loan against the policy instead of surrendering it

Loans against sovereign gold bonds may help reduce borrowing cost: Experts

There's a five-year lock-in on SGBs and thereafter you may have to sell them at a discount, hence borrow

Don't turn complacent, consult experts if builder claims nods are in place

First, carry out the necessary checks of the plot on which the project stands

Why saving enough for retirement is difficult

Longevity risk, taxes, financial repression, unexpected high inflation, career risk, and psychological factors make it very difficult to save enough for retirement

Invest in MNC funds for exposure to high-quality businesses: Experts

Since valuations are higher in this space, a 7-yr horizon with 10% capital outlay can be looked at

Paid tax abroad? Remember to submit Form 67 and proof at earliest

If you don't do so, both processing of your tax return and refund could get delayed

Discuss family finances with your children

Transparency with your children is a difficult thing to achieve, especially in our society where money-related discussions are considered "dirty" or taboo